Ethiopia: Edible Oil Value Chain Enhancement
JOINT PROGRAMME QUICK FACTS
Total Budget $3,000,000
Delivery Rate
Participating Agencies ILO, FAO, UNIDO
Main Achievements
- Awareness raised among oil producers of the need to update processing practices; strong networks established among processors to jointly procure and process oilseeds.
- Business Companies set up to establish common facilities such as refining and packaging plants as well as joint purchases of raw materials and spare parts. Linkages created between farmers unions and oil processors for the supply of raw materials have cut out unnecessary middlemen.
- Joint programme has improved investors' perception of oilseed sector and they are increasingly willing to consider loan applications from oil processors.
Contact Asegid Adane, aadane@unido.org
Ethiopia has huge potential for scaling up its production of edible oil: favorable agro-climatic conditions for increased oil seeds cultivation, the labor-intensive nature of the sub-sector, a conducive business environment, the willingness of oil seed crushers to work at full capacity and the huge local demand.
Despite this potential, however, the edible oil processing industry remains underdeveloped. Main constraints are: low production, poor quality of seeds, inadequate trading infrastructure and poor agro-processing facilities, weak business development services for upgrading the processors and limited access to local and international markets. Weak linkages among the chain’s actors and a lack of working capital also constitute major obstacles.
The aim of the MDG-F joint programme is to increase the productivity and competitiveness of oilseed producers, boost the capacity for processing edible oil seeds and improve access to local and international markets. This is being achieved by integrating the private sector into the entire edible oil seed production value chain.